Silver Price Tumbles Below Neckline Despite 1% Gain
Silver's price has shown gains of over 1%, but it is still trading below its 'head and shoulders' neckline. This suggests that the overall trend in the short-term may be tilted to the downside, with bearish momentum continuing to build.
The white metal is currently trading at $64.24, after bouncing off daily lows of $62.94. If it struggles to clear the neckline at around $64.10-$64.15, it could trade sideways and continue to build bearish momentum.
If XAG/USD rises past $65.00, it could open the door for a recovery to the 100-day Simple Moving Average (SMA) of $66.94. On further strength, the $67.00 could be cleared, and bulls could test the $70.00 figure up next.
Above that, the 200-day SMA at $73.05 is waiting. However, if bearish momentum builds, sellers can test the 50-day SMA at $62.55 before targeting the July 22 high-turned-support at $61.01. A breach of the latter will expose $60.00.